AR & VR - Egypt

Egypt

Revenue in the AR & VR market market in Egypt is projected to reach US$111.4m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.89%, resulting in a projected market volume of US$178.5m by 2029.
The largest market within this market in Egypt is AR Software, which is anticipated to have a market volume of US$45.8m in 2024.
Despite the significant potential in Egypt, most revenue in the AR & VR market market is currently generated the United States, with a projected market volume of US$10,900.0m in 2024.
By 2029, the number of users in the AR & VR market market in Egypt is expected to amount to 53.8m users.
User penetration in Egypt will be 41.4% in 2024 and is expected to reach 43.6% by 2029.
The average revenue per user (ARPU) in Egypt is expected to amount to US$2.4.
Egypt is witnessing a growing interest in AR and VR technologies, driven by the government's push for digital transformation and innovation in education and tourism.

Definition:

Augmented reality (AR) and virtual reality (VR) make it possible to combine the real and virtual worlds. AR is generally accessed via mobile phones and primarily relies on lenses. AR effects can be created by using lenses in social media apps, for example. AR is also used for displaying digital 3D objects in our surroundings, e.g., in gaming or eCommerce apps. Meanwhile, VR technology allows users to dive into the virtual world, and, unlike AR technology, it requires a headset device which enables the creation of virtual worlds.

Structure:

The AR & VR market consists of six different markets: AR Advertising, AR Hardware, AR Software, VR Advertising, VR Hardware, and VR Software. AR Advertising covers mobile advertising that is displayed in the most prominent social media apps. AR Hardware comprises AR headsets and glasses. AR Software is divided into three different application types, namely social media, gaming, and eCommerce applications, which can be accessed via the most prominent app stores. VR Advertising covers in-game advertising as well as advertising in VR videos. VR Hardware comprises both tethered head-mounted displays (HMDs) and stand-alone HMD headsets. Lastly, VR Software covers VR games and VR videos, which require headsets.

Additional information:

The market comprises revenues, users, average revenue per user, and penetration rates. Revenues are generated through in-app purchases, advertising spending, and consumer spending on apps, games, and hardware such as headsets or glasses. Sales channel data shows both online and offline revenues, which include VAT. The market only displays B2C revenues and users for the above-mentioned markets and markets; B2B and B2G revenues are not included. Additional definitions for each market can be found on the respective market pages.
Market numbers for VR headsets are also featured in the Consumer Market Insights, namely in the Gaming Equipment market of the Consumer Electronics market. Unlike the VR Hardware market in the Advertising & Media Outlook, the Gaming Equipment market also covers smartphone VR devices.
Key players in the market include companies such as Meta (Oculus VR), Microsoft (HoloLens), Snap Inc. with different lenses, and Nvidia, which offers computing hardware components.
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Analyst Opinion

The AR & VR market in Egypt is witnessing significant growth and development, driven by customer preferences for immersive and interactive experiences, as well as advancements in technology. Customer preferences in Egypt are shifting towards more immersive and interactive experiences, and AR & VR technologies provide the perfect platform for such experiences.

Consumers are increasingly looking for unique and engaging ways to interact with products and services, and AR & VR offer the opportunity to do so. Whether it's trying on virtual clothing, exploring virtual real estate, or experiencing virtual tours of historical sites, customers in Egypt are embracing the possibilities that AR & VR present. Trends in the AR & VR market in Egypt include the adoption of these technologies across various industries.

From healthcare and education to tourism and entertainment, businesses in Egypt are recognizing the potential of AR & VR to enhance their offerings and provide a competitive edge. For example, healthcare providers are using AR & VR to simulate surgeries and train medical professionals, while educational institutions are incorporating these technologies to create immersive learning experiences. Additionally, the tourism industry is leveraging AR & VR to showcase Egypt's rich history and cultural heritage to visitors.

Local special circumstances in Egypt play a role in the development of the AR & VR market. The country has a young and tech-savvy population, which is driving demand for innovative and interactive experiences. Furthermore, Egypt has a strong entrepreneurial culture, with startups and small businesses emerging in the AR & VR space.

These local players are driving innovation and creating unique solutions tailored to the needs of the Egyptian market. Underlying macroeconomic factors also contribute to the growth of the AR & VR market in Egypt. The country has been experiencing economic growth, which has led to increased consumer spending power.

This, coupled with a growing middle class, provides a favorable environment for the adoption of AR & VR technologies. Additionally, the government of Egypt has been supportive of the technology sector, providing incentives and support for startups and innovation. In conclusion, the AR & VR market in Egypt is experiencing significant growth and development, driven by customer preferences for immersive experiences, advancements in technology, and favorable macroeconomic factors.

Businesses in various industries are adopting these technologies to enhance their offerings and provide unique experiences to customers. With a young and tech-savvy population, a strong entrepreneurial culture, and government support, Egypt is poised to become a hub for AR & VR innovation in the region.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the AR & VR market. AR and VR enable consumers to experience a new dimension, using either a headset or installed units, as they combine the real and virtual worlds. Consumer revenue figures refer to revenues relating to AR hardware, AR software, VR hardware, VR software, and spending on AR and VR advertising. Both digital and non-digital revenues are included.

Modeling approach / Market size:

Market sizes are determined through a top-down approach, building on specific predefined factors for each market market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports. In addition, we use relevant key market indicators and data from country-specific associations, such as consumer spending, internet penetration, 4G coverage, and historical developments. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are level of digitalization, adoption of technology, GDP per capita, and internet penetration.

Additional notes:

The market is updated twice a year in case market dynamics change. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).